Beginners often make fatal mistakes and then lose money and their motivation for further working. First of all, it’s about trading strategies. In fact, before trading at the exchange, one must change a strategy to use, however, most do this wrong, and some even start without any. It’s the reason of losing money, because you can’t earn with the strategy hastily done by one who doesn’t know any trading tricks. We are to talk about profitable strategies of forex trading for beginners and which systems cannot be used in any case.
The problem of beginners is in the lack of knowledge. They don’t know all principles and laws of the market, its features and can’t detect entrance signals in a moment. A novice can learn basics, but professionalism comes with experience – this is the only way; and this skill is essential for trading with high-quality and profitable strategies. When a novices comes to the market and wants to choose a strategy, they look for one by simplicity. If they don’t understand the essence of a strategy, they won’t trade with it. It’s right, but simplicity doesn’t always stand for quality, and often – conversely. There are lots of bad and unprofitable strategies on the New, can be easily detected by a pro, but not a newbie. No need to list all such strategies – I’d better mention good ones.
Usually, a beginner has little knowledge and low skills for creating their own strategy. They may try to combine several indicators, but it’s almost very bad stuff. That’s why, initially, use a ready strategy, and only then adjust it or create your own.
As I’ve mentioned, simplicity doesn’t always lead to profits – any newbie must realize it. If you google “forex strategies”, you’ll be given several indicator-strategies comprehensive even for a school student. Nevertheless, most of them are unprofitable. Think: if it were that simple, were there any people earning less than 1000 $ per month? Surely, no! So, don’tbelieveverysimpletradingalgorithms.
Though, you don’t have to drill a strategy having unclear words for you. Maybe, you’ll use such algorithm in future, when you get experienced and skillful. Now your main goal is to find a system understandable for you and profitable. There are some of them, though, not so many. We are to talk about them.
You won’t need any trading tricks for that – just build Fibonacci lines, estimate the trend and control your emotions while trading. All the rest will be done by the strategy. Later, you’ll be able to supplement the standard Fibonacci strategy with new tools, but initially ordinary lines will be sufficient.
The essence of the strategy is: you are watching the “Economical Calendar” (can be found on our website), waiting until another significant index (GDP, interest rate, etc.) is published and enter the market toward the news. For instance, if GDP rises, you buy, and if the interest rate falls – sell. No extra knowledge needed, because all impacts are described in the calendar. All you need is fast reaction. Once data appears at the calendar, enter the market in a moment. And you also must close the order on time, because a continual drawback usually takes place after the news.
You are looking for a moment when the trend changes. It may be done with divergences (differences between chart and indicator parameters), moving averages, trend lines and Fibonacci lines. Having done everything right, you’ll get a chance to earn with a new trend, squeezing all profits from it.
Most beginners trade with trend, naively thinking that it won’t change once they open an order. But the longer is the trend, the more is the probability of its change, and only that strategy can lead to profits, which estimates the moment when market turns.
Don’t think that those strategies I’ve given will let you gain effortlessly. You won’t need much specific knowledge, but will have to understand fundamental laws of the exchange. If you go to forex and don’t even know where your money will go, which asset you buy and because of whom you earn, there’s no chance for success. Maybe, you’ll trade profitably for sometime (not likely), but it’s impossible to reach the pro level without basics.
While you’re a beginner, you make mistakes and lose money. And profits don’t always cover losses. Here, a problem of risks insuring appears as you can lose everything at forex in a moment. Set StopLosses, don’t enter with too big orders, withdraw periodically – they are traditional tips of many pro-traders. Unfortunately, novices don’t care and lose money and motivation. Don’t try to earn a million in the first month of trading, as now your main objective is to learn. Profits will come further.
As for the conclusion, forex trading for beginners doesn’t stand for profits but for basics skills. You can suffer losses, make stupid mistakes, give in to emotions, but must understand that this is the very start and you have to stand and survive. Then, the long-expected profit will come and you’ll be a successful trader eventually. Remember: trading starts with downs, but ups will come further.
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